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GENERAL LOANS
POLICY
ANSA McAL Group Employees Credit
Union Co-operative Society Limited encourages and promotes thrift among
its members and provides the with loans for productive and
provident purposes at an interest rate to be determined by the Board of
Directors within the limits contained in the relevant current statute,
on the unpaid balance and to be repaid by such regular repayments/
installments, within such periods of time as determined by the Credit
Committee.
1.1.0
METHOD OF APPLICATION
1.1.1 Application
for loans must be made on the prescribed form and all the questions
answered faithfully. The applicants must attach, where applicable,
documentary evidence to the application.
1.1.2 Applications
must be forwarded to reach the Credit Union’s Office by 4:00p.m. on the
last working day prior to the day of meeting.
1.1.3 The
Loan Application Form is the property of the Credit Union and once
processed becomes a confidential document.
1.2.0
LOAN ELIGIBILITY:
A
member of the Credit Union is eligible to apply for a loan not exceeding
twice his/her paid up share capital. Loans shall be granted to a maximum of $200,000.00
1.2.1 The
applicant must have been a member for not less than six (6) months.
1.2.2 Where
loans are in excess of shares a period of three (3) months must lapse
before the Credit
Committee will consider the granting of another loan except in the case
of an emergency or reasons acceptable to the Credit Committee.
1.2.3 Casual,
Contract Ex-Employees, Retirees and Family Members:
Members in the
above Group may be granted character loans up to 50% above their
shareholding, to a maximum of Twenty Thousand Dollars ($20,000.00) in
excess of shares unless adequate security is provided for the additional
amount.
1.3.0 LUMP-SUM
PAYMENTS FOR LOAN PURPOSES:
1.3.1 Where
in the opinion of the Credit Committee, deposits are made by a member to
increase share capital to obtain a loan for which he or she would not normally qualify,
a period of two (2) months or such other period determined by the
Credit Committee must elapse before the application is considered
subject to a limit of Ten Thousand Dollars ($10,000.00).
1.4.0 PERIOD
OF REPAYMENT
1.4.1 Payments
on a loan must not exceed seven (7) years.
1.4.2 Lumpsum
loan payment
Where shares are used to pay off
loan a penalty of three (3) months interest to be charged except in the
case of retrenchment or other reasonable cause satisfactory to the
Credit Committee. Where a Member made cash payment to liquidate loan
balance a penalty of one (1) month interest to be charged.
1.5.0 COLLATERAL
SECURITY
The Credit
Committee will accept the following as collateral security for a loan:
1.5.1 Capital
as evidenced by:
Member’s Shares. Fixed Deposits in the Society and other reputable
financial institutions.
1.5.2 Character
(This will be based on the applicant’s length of Service, borrowing and
repayment pattern, personal Discipline and credit worthiness).
1.5.3 Instrument
of Charge on vehicle owned by member.
1.5.4 Assignment of Life
Insurance with sufficient cash surrender Value to cover any deficiency
to
be calculated by
the Credit Committee. The amount would be 75% of the cash surrender.
.
1.5.4 A
Co-maker who must be a member of the Credit Union with sufficient share
capital to endorse the loan. The Co-maker’s share capital will be
withheld accordingly until the amount guaranteed has been settled or
until such time as the Credit Committee releases him/her from his/her
liability. The onus is on the Co-maker to understand the conditions and
be appraised of the borrowing members financial position before signing
as a guarantor and before funds are disbursed.
1.5.5 Unit
Trust Holdings – Up to a maximum of 75% of Units held in the First Unit
Scheme.
1.5.6 Stocks
or shares – where assignable, up to the maximum of 50% of the market
value.
1.5.7 Property
– Land or land and buildings – Mortgage Deed to be prepared.
1.5.8 Any
other items acceptable to the Credit Committee as Security and based on
recoverability and liquidity
1.5.9
All legal fees will be for the
account of the applicant.
No security could be with drawn
or released until full liquidation of indebtedness and/or the approval
of the Board.
1.6.0
WAIVERS OF
LOAN REPAYMENT
1.6.1 Authority
for granting of waivers is vested in the Credit Committee and
applications must be made in writing. Two (2) monthly
waivers shall be allowed per calendar year.
1.6.2 No waiver would be granted to a
member whose conditions are as follows:-
I. Where
a waiver of policy was granted by the Board of Directors and the excess
outside the policy is still outstanding.
2.
Where a member co-signed for the last loan and the excess is outside the
character limit.
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